Pursuant to articles 21 and 22 of the Establishment and Settlement of internal debt of the Republic of Srpska Act
(„Official Gazette of the Republic of Srpska“, no. 63/04, 47/06, 68/07 and 17/08) and article 34 paragraph 2 of the
Law on RS Government („Official Gazette of the Republic of Srpska“, no. 3/97 and 3/98), the RS Government, at
the 101st session convened on 28 November 2008, decided as follows
DECISION ON
THE ISSUE OF THE REPUBLIC OF SRPSKA BONDS
FOR SETTLEMENT OF OBLIGATIONS IN TERMS OF TANGIBLE AND
UNTANGIBLE DAMAGES RESULTING FROM
THE ARMED CONFLICT IN THE PERIOD FROM 20 MAY 1992 TO 19 JUNE 1996
I
(1) On account of regulating a part of internal debt of the Republic of Srpska on the grounds of legally
binding court decisions and out-of-court settlements admitting the right to reimbursement of tangible and
untangible damages resulting from arms conflict in the period from 20 May 1992 to 19 June 1996, pursuant to the
Establishment and Settlement of internal debt of the Republic of Srpska Act (hereinafter:the Act) the Republic of
Srpska shall issue bonds in compliance with this decision.
(2) the value of issued bonds from paragraph 1 of this article amounts to 27.868.713,00 BAM,
representing the value of outstanding obligations established by verifying obligations from legally binding court
decisions and out-of-court settlements admitting the right to reimbursement of tanbigle and untangible damage
resulting from the armed conflict.
II
Basic elements of the bonds under article 1 of this decision are:
1) emitter: the Republic of Srpska
2) nominal value of bond issue: 27.868.713,00 BAM
3) title of bond issue: obligations in terms of tangible and untangible damage
4) type of bonds: long-term bonds with interest yield (coupon), limitlessly negotiable, in dematerialised
form, on name
5) nominal value of one bond: 1 BAM
6) type of issue: primary issue
7) ordinal number of issue: first issue
8) number of issued bonds: 27.868.713
9) date of issuance: 15 December 2008
10) maturity term: 15 years
11) grace period for repayment of principal: 5 years, included in the repayment deadline
12) intrest rate: fixed, 1,5% per annum, applied on the rest of the principal with the application of linear
model of interest calculation, on the basis of actual number of days.
III
(1) bonds carry interest accrued on the principal rating to 1,5% per annum. Interest rate is accrued as
annual interest rate of bonds on the principal, then interest rate of the bonds coupon values 1,5% which is 0,015
BAM per 1 BAM of bonds.
(2) In grace period the bond holder has a right to interest accrued on the total value of the principal.
(3) first payment of the interest shall be realised on 15 December 2009 for the period of and including the
date of bond issuance 15 December 2008, until but not including 15 December 2009. Other interests shall be paid
off annually according to the following plan:
Br.protokola prevoda: 149708
15.12.2010; 15.12.2011; 15.12.2012; 15.12.2013; 15.12.2014; 15.12.2015; 15.12.2016; 15.12.2017; 15.12.2018;
15.12.2019; 15.12.2020; 15.12.2021; 15.12.2022 and 15.12.2023.
(4) after the expiration of grace period the bond holder has a right to a proportional part of the principal
and corresponding share of the interest accrued on the rest of the principal.
IV
The bonds principal shall be paid off after the expiration of grace period, once per annum.
V
(1) The Interest, that is the principal shall be paid off within 15 days from the day of the interest accrual,
that is the maturity of the principal, by transfer of assets on the account of the bondholder.
(2) The paying off shall be realised in compliance with the following repayment plan:
date
Nominal
value
15.12.2009
15.12.2010
15.12.2011
15.12.2012
15.12..2013
15.12.2014
15.12.2015
15.12.2016
15.12.2017
15.12.2018
15.12.2019
15.12.2020
15.12.2021
15.12.2022
15.12.2023
27.868.713,00
27.868.713,00
27.868.713,00
27.868.713,00
27.868.713,00
27.868.713,00
27.868.713,00
27.868.713,00
27.868.713,00
27.868.713,00
27.868.713,00
27.868.713,00
27.868.713,00
27.868.713,00
27.868.713,00
Prevailing part
of the nominal
value
27.868.713,00
27.868.713,00
27.868.713,00
27.868.713,00
27.868.713,00
27.868.713,00
25.981.841,70
22.294.970,40
19.508.099,10
16.721.227,80
13.934.356,50
11.147.485,20
8.360.613,90
5.573.742,60
2.786.871,30
Repayment
rate
Repayment of
the principal
0%
0%
0%
0%
0%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
0,00
0,00
0,00
0,00
0,00
2.786.871,30
2.786.871,30
2.786.871,30
2.786.871,30
2.786.871,30
2.786.871,30
2.786.871,30
2.786.871,30
2.786.871,30
2.786.871,30
Repayment
of
the interest
418.030,70
418.030,70
418.030,70
418.030,70
418.030,70
418.030,70
376.227,63
334.424,56
292.621,49
250.818,42
209.015,35
167.212,28
125.409,21
83.606,14
41.803,07
Repayment
of
the annuity
418.030,70
418.030,70
418.030,70
418.030,70
418.030,70
3.204.902,00
3.163.098,93
3.121.295,86
3.079.492,79
3.037.689,72
2.995.886,65
2.954.083,58
2.912.280,51
2.870.477,44
2.828.674,37
VI
In case of dalay in the repayment of the interest, that is the principal of bonds, the Ministry of Finace shall
pay the statutory penalty interest from the day of the maturity of the interest, that is the principal until the day of
repayment.
VII
Assets for settlement of obligations in view of this issuance shall be provided from the Republic of Srpska
budget.
VIII
Br.protokola prevoda: 149708
Bonds represent direct and unconditional obligation of the Republic of Srpska, they are mutually equal
and the least in rank with all other current and future obligations for whose execution assets are provided by the
Republic of Srpska.
IX
(1) Bonds are registered in the Central Securities Register j.s.c. Banja Luka (hereinafter: Central Register).
(2) The right to ownership over bonds and the right to management becomes effective from the day of
registration of bonds in the Central Register.
(3) Ministry of Finance shall submit a request for registration (entry) of bonds to the Central Register
within eight days from the day of the decision on bond issuance together with the verified obligations report
according to legally binding court decisions and out-of-court settlements admiting the right to reimbursement of
tangible and untangible damage resulting from the armed conflict from the period 20 May 1992 to 19 June 1996
executed by bonds issuance.
(4) The accuracy of records in the report submitted to the Central Register by the Ministry of Finance is
the sole liability of the Ministry of Finance.
X
The Central Register shall, according to the received decision on bonds issuance and the request for
registration of bonds followed by the report from article IX of this decision, register the issuance, open and handle
the accounts of the bonds holders, register and secure data on the balance and changes on accounts of bonds
holders, in compliance with the regulations defining the securities market and Central Register acts.
XI
The Republic of Srpska can, at any time, buy out the bonds at price on the market or othewise, in
compliance with the RS Government Decision, providing, in case of purchase by public offer, that offer is equally
accessible to all bondsholders.
XII
Interest income and capital proceeds in view of bonds shall not be taxed.
XIII
The Republic of Srpska is not registered in the Register of emitters at the Securities Commission of the
Republic of Srpska.
XIV
(1) Central Register shall inform the Banja Luka stock exchange j.s.c. Banja Luka on registration of bonds.
(2) According to Central Register report, bonds issued in compliance with this Act shall be inserted into
the official stock market of Banja Luka stock exchange j.s.c. Banja Luka.
(3) Trade in bonds on the secondary market shall be performed in compliance with the provisions
regulating trade in securities.
(4) The value of bonds inserted in the official stock market of Banja Luka stock exchange j.s.c. Banja Luka
shall be based on so-called clean price, that is it shall not include accrued interest. Payment upon purchase of
bonds in the official stock market shall include the trade price enlarged by the accrued interest for the period of
last interest repayment until the assumed day of settlement, not including assumed day of settlement.
(5) For the accrual of gained interest from bonds, actual number of days in the period for which the
interest is accrued that is for the period starting, and including, from the day of maturity of the previous coupon
and ending , not including, with the day of maturity of the next coupon.
Br.protokola prevoda: 149708
XV
(1) The activities of disbursing agent are executed by the Central Register in compliance with the Contract
or the Ministry of Finance.
(2) Assets for the interest and the principal of the bonds, the disbursing agent shall, in compliance with
the deadline defined in article V of this decision, repay through payments system to bonds holder, without
deductions for remuneration or other expenditures.
XVI
In case of dispute the parties shall settle their mutual rights and liabilities in compliance with the relevant
laws before the Basic court in Banja Luka.
XVII
This Decision shall be realised by the Ministry of Finance.
XVIII
This Decision shall come to force on the day of its enactment, and shall be published in „Official Gazette of
the Republic of Srpska“.
Number: 04/1-012-2755/08
PRIME MINISTER
Date: 28 November 2008
Milorad Dodik
Br.protokola prevoda: 149708